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THE EUROPEAN EMPLOYMENT STRATEGY: WHY, WHAT AND HOW EFFECTIVE?

Patricia Leighton,

University of Glamorgan, Wales, UK*

A Presentation for the FHRD Conference, 22^nd June 2005,” The European Employment Strategy-Its nature and impact on Maltese employers and workers”

* Jean Monnet Professor of European Law

   email: pleighto@glam.ac.uk

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1 INTRODUCTION

1.1 Change and challenge

It is self-evident that currently the EU is currently facing a number of major problems and challenges. The Council of Ministers Meeting in Brussels on 16-17^th June, 2005 indicated major tensions between various member governments.

Although these have appeared to focus on the ratification or otherwise of the EU Constitution or the maintenance or otherwise of the UK rebate/ reform of the Common Agricultural Policy, in reality, the debates are around modernising and changing the EU. Many argue this is vital if the EU retains the ability of the EU to compete effectively in a global economy and, increasingly, a global labour market. There are major concerns about the USA, China, India and many other Asian countries and their growing economies.

The impact of information and communication technology  has meant that it matters less and less where and when work is done has enabled key parts of previous EU service sectors to be outsourced and off- shored, along with key areas of manufacturing industry. There is mounting evidence that, given the dominance of the English language as the language of commerce, that customer services in the finance sector, especially from the UK are increasingly provided by staff in India. In this context, the role of labour costs, that include the costs of employment rights, occupational benefits as well as basic pay, have been subject to close examination.

In other employment sectors, employing organisations have relocated from, say, Germany, France and Belgium to parts of Eastern Europe, some which are within the EU but some not. Recent changes within Germany to relax laws on reduced working hours provide further evidence of the concerns.

The EU’s response has, typically, been to refute any suggestion that globalisation will lead to a “race to the bottom”; that competition is as much about quality, human capital investment etc as cost, and that the traditional “European Social Model” of a well trained, well managed, well protected and well rewarded workforce will ensure continuing success. Traditionally, there has been opposition to so-called (neo)liberal labour market policies or the Anglo-Saxon model. These differences in approach are very deep-seated.

All of this has put the spotlight on the European Employment Strategy and its ability to deliver improved productivity and competitiveness in member states. It must be borne in mind that the EU only has an employment reality through the labour markets and employing organisations within each state. The EU itself employs very few people and insofar as it wants to achieve change has had obvious limitations.

It is also important to note that working people themselves are changing, including regarding their aspirations. They tend now to be more mobile, self-reliant and self-managing. They expect different things of the workplace than pay and occupational benefits and a career with one or two employers. Evidence for this is emerging in many countries and beyond the EU. These changes have major implications for law/regulation, for employer and for social security systems. The work of the Transitional Labour Markets Network(TLMNet) has marked a move to a life-cycle approach that aims to ensure that transitions from school/university to work, unemployment to work, work to retirement etc are managed and supported well.

Such people who move from job to job, from training to a job, from working as an employee to becoming self-employed need structures and systems to minimise problems. They, themselves are typically adaptable and flexible and do not belong to or rely on traditional trade unions or other groupings.

This change is commented on because much of the EU’s traditional employment agenda has seen the well -resourced, stable, (male dominated?), hierarchical workplace as the “gold standard to be aspired to. EU and many national employment laws have re-enforced this. EU attempts to improve the position of part-time, fixed term wokers, often female, has had very limited and variable impact.

The traditional approach has also, in many member states and within the EU institutions, seen, for example, employment agencies that act as intermediaries to facilitate labour market transitions, as destabilising, undermining of good employment relations and a threat to the public employment services (PES). However, research indicates that well regulated agencies can not only provide flexibility for employers but can also develop the careers of many people.

In the current debates within the EU regarding employment it must be recalled that there are two critical pieces of draft legislation that are still “on the table” but about which it appears difficult to achieve consensus. In effect, they provide direct evidence of the tensions over the future direction of employment policy within the EU.

1.2 The core debate

At the heart of current debates are two pieces of legislation

o       The revision of the Working Time Directive, 1993

o       The Temporary Agency Work draft Directive, 2003 (TAW)

Both aim to increase flexibility, in the case of the TAW draft , by legitimising and formalising the work of employment agencies and by providing essential protections for workers. The Working Time revisions also aim to provide increased flexibility,  predominately for employers, by, for example, enabling the 48 hour maximum week to be averaged over one year and by not treating  so-called “inactive standby time” as “counted” working time (thought it is not rest time either!). There remains deadlock on the 48 hour opt-out. Clearly, feelings are running high as between the Council and the European Parliament, not least because this is the first time in the history of employment law in the EU that workers rights are being reduced.

So; why is this happening at a time when the European Employment Strategy itself is going through a period of reflection and major change? It is, of course, difficult to provide a full explanation but it can be suggested that-

·        There are emerging concerns about the effectiveness of “hard law” to achieve change, not least, because it relies generally on individual claims being made to courts/tribunals where, typically, the success rate is low, the process is lengthy and remedies, if obtained d are not always what are required.. However, it should be noted that the European Court of Justice remains robust in supporting hard law employment rights The EES is a conscious or unconscious reaction to the perceived failures of “hard law”. This matter is considered further below.

·        There is a real concern that the so-called EU social model can no longer be retained; that it is too expensive, can operate so as to lead to complacency and inefficiency and that employment rights can be too expensive and a disincentive to recruitment and flexibility. OR. That the model must be retained so as to protect the hard won gains of employees, reward commitment and loyalty, encourage human capital investment and provide for societal as well as employment stability.

·        EU enlargement has caused further focus on these issues. There are lower labour costs in most new member states and, generally, a stronger commitment to modernising the EU, perhaps because as “new”, as opposed to founder, members the original aspirations of the “European Project” are less embedded.

However, it should be noted that the very forces that are now causing concern to EU policy-makers regarding the EES were the self-same ones that led to its creation. These are, namely, the need to –

Ø      Encourage employment restructuring,

Ø      Enhance skills

Ø      Improve productivity

Ø      Reduce unemployment (now; to reduce, inactivity)

Ø      To ensure success for economic and monetary union

2 The EES-origins and intentions

The first thing hat needs to be said about the EES is that it is a unique experiment. Although so called “soft law” exists in most member states in the form of guidance, codes of practice, recommendations and the like, this was the first time soft law had been used in such a careful and coherent way. There are, of course, employment standards or recommendation from bodies such as the ILO and OECD but the EES has explicit targets and a tight mechanism for monitoring. It was always intended to achieve measurable change. As time has gone on from when the EES first established its Employment Guidelines in 1997 the provisions have tended to get more precise. Nonetheless, the EES always was hugely ambitious both in terms of its objectives but also its processes. If it has not met the targets it may because it was always too ambitious.

Following the Maastricht Treaty in 1993 the Commission issues a White Paper in 1993. It was entitled, Growth, Competitiveness and Employment-The Challenge and Way Forward into the 21^st Century. Right from the outset targets were set, for example, the creation of 15 million new jobs within five years. Again, from the outset, it emphasised;

Vocational training

 Reducing non-wage costs

 Providing measures that encourage labour market participation

 Measures to improve the labour market position of members of disadvantaged

 groups such as women, people with disabilities etc.

Although some of these topics could have been or, indeed, were already subject to hard law, the innovation was to act through member states and provide flexibility for how the issues were dealt with. They are EES “Guidelines”, not laws.

The EES was formalised at the Treaty of Amsterdam, 1997 and at Luxembourg the 4 “Pillars” were agreed. These were the creation of Guuidelines grouped round the following topics-

The individual guidelines under the “pillars” set down what governments should do. For example, remove or lessen obstacles to the creation of small businesses, increase affordable child care to encourage women into the labour market, improve training for the unemployed etc etc.

It marked a major change to the management of employment policy in the EU by objectives. A move from management through policy to management by objectives.

But what is its underlying philosophy?

o       It emphasises the value of soft law, that is flexible and adaptable to local conditions

o       The establishment of clear standards capable of translation into local conditions: these have been set in the light of research and expert advice

o       The value of sharing best practice

o       The value of a mechanism to encourage convergence

2.1 Some detail: Title VIII of the Treaty of the European Union: The legal base of the EES and its mechanisms.

Articles 125-130 establish the Employment strategy-the key aspects being as follows:-

• The objective of  “developing a co-ordinated strategy” for “promoting a trained, skilled and adaptable workforce and labour markets”
• The link between employment policies and the “broad economic guidelines of Member States”
• Although there is recognition of the key role of management and labour at national level there shall also be recognition of employment as a matter of “common concern” and co-ordination across the EU
• High employment levels will, if appropriate, be supported by EU action
• Each year there will be (1)Guidelines developed by the Commission, following consultation with the European Parliament, the Economic and Social Committee, the Committee of the Regions and the Employment Committee, and adopted by the Council on the basis of qualified majority voting These are sent to member states
• Each year national governments report on (2) “the principle measures taken to implement the employment policy” (NAP)
• The Council, following advice from the Employment Committee that has considered the NAPs may make (3) Recommendations to Member States by qualified majority. These, in effect, set policy objectives for the following year and act as a “report” on a member state’s performance.
• Article 129 is very important. This states;

“The Council(……)after consulting with the Economic and Social Committee and the Committee of the Regions, may adopt incentive measures designed to encourage co-operation between Member States and to support their action in the field of employment through initiatives aimed at developing exchanges of information and best practices, providing comparative analysis and advice as well as promoting innovative approaches and evaluating experiences, in particular, by recourse to pilot projects” other than by legislation in Member States

Note. The Employment Committee, that has two representatives from each Member State acts in a supportive role in co-ordinating activities etc between Member States.

An important dimension of the EES is its local delivery

Essentially, the EES is a “circular process”, with constant review of employment policy at both EU and national level. This is called, the Open Method of Co-ordination. It should be noted that there is no obvious sanction for “failure”, other than “naming and shaming” by the Commission. Are there more subtle “sanctions”?

2.2 From Lisbon to today

One of the regular features of the EES (and possibly one of its weaknesses?) has been its constant changes. Lisbon set targets for labour market participation by-

The targets were to be met by 2005 and finally met by 2010. In 2002, the following occurred;

a.       Setting interim employment targets (67% by 2005) and new targets for the employment of older workers

b.      Higher emphasis on the quality of work

c.       Higher emphasis on modernisation of labour markets and labour mobility; in creased adaptability and the breaking down of barriers to change

d.      Better use of ICT

e.       Emphasis on the development of partnerships, including with the social partners, regional and local authorities and representatives of civil society, so as to contribute to high levels of employment

The 2003 Guidelines marked another stage in the development of the Guidelines. There is even greater emphasis on increasing employment rates and also increasing productivity rates. It is stated that , “employment policies should facilitate participation in employment through promoting access to quality employment for all men and women that are capable of working”. It is implicit in the new approach that the commitment to gender mainstreaming should be continued.

An example was  the following:

That there should be improvement in the support offered to job- seekers, “with special attention given to people facing the greatest difficulties in the labour market”.

“ Every unemployed person is offered a new start before reaching six months of unemployment in the case of young people and twelve months in the case of adults in the form of training, re-training, work practice, a job or other employability measure, combined, where appropriate with on going job search assistance”

“By 2010, 25% of the long-term unemployed participate in an active measure in the form of training, re-training, work practice, or other employability measure, with the aim of achieving the average of the three most advanced Member States”.

The Entrepreneurism pillar was still there ,”Supported by the process of benchmarking of enterprise policy and the implementation of the European Charter for Small Enterprises”. The processes for setting up new and small businesses should be simplified and there should be promotion of “ education and training in entrepreneurial and, management skills…..(making) “ entrepreneurship a career option for all”.

By 2005  “ job seekers throughout the EU should be able to consult all job vacancies advertised through Member States’ employment service”.

In terms of training and lifelong learning;

“At least 85% of 22 year olds .. should have completed upper secondary education;

the European Union average level of participation in life-long learning should be at least 12.5% of the adult working age population”

“….to achieve by 2010 an in crease of 5 years, at EU level of the effective age of exit from the labour market(currently 59.9) National policies can take account of particular national circumstances

The continuing pay gap between men and women required that, by 2010 there should be a substantial reduction in the gender pay gap, through a multi-faceted approach.”

There were calls for measures to increase the labour market participation rates of women, low skilled people, older workers and people with disabilities. Tax measures should operate so as not to deter people from working. By 2010 there should be “ a reduction in the tax burden on low paid workers”.

The 2003 Guidelines also placed considerable emphasis on regional employment disparities. “The potential for job creation at the local level, including in the social economy should be supported and partnerships between all relevant actors encouraged”

“Member States will:

-promote favourable conditions for private sector activity and investment in regions lagging behind;

-ensure that public support in regions lagging behind is focused on investment in human and knowledge capital” 

2.3  The monitoring process

The Employment Committee has working groups on the various indicators of performance. The indicators are revised in the light of statistical development and new policy priorities. The indicators are devised in the context of policy relevance, the reliability of data, comparability between States, the accuracy and timely nature of data and the fact that the data must be easy to understand.

Key indicators measure the performance of a State against the Guidelines and targets; context indicators put national action plans (NAPs) into a national perspective.

By 2002 there were 35 key indicators (participation rates, pay levels, detail on the tax and benefit systems, working time, health and safety data etc) and 64 context indicators( regional, sectoral data, social and family data, demographic material etc) There is considerable reliance on Eurostat as well as national data.

As considered above, the  review of each Member State’s NAP leads to Recommendations for change and development. This focuses on two aspects. First, is the performance of a Member State in terms of employment- has there been compliance with the Lisbon targets, participation of women and older workers, overall tax burdens etc. Second, there is advice as to how a State could improve their overall performance.

In 2002 there was also a general review of the EES and its effectiveness, and an assessment of the EU labour market more generally. This process revealed considerable differences in performance between States and within States, in particular in Regions. Other relevant comments by the Council included;

.       There is a lack of reporting on the impact of measures on the labour market, budgetary information, evidence of the use of structural funds to support the EES and the involvement of key stakeholders

.       Although there has been much evidence of active labour market measures, such as improvements in Employment Services, improvements in basic skills and CIT skills and there has been much effort to bring disadvantaged groups into employment, there are major problems in skills development by low skilled, as opposed to high skilled workers.

.       The has been little progress on active ageing and on equal opportunities

.       Preventive measures in both employment and training are not well developed. These are measures to prevent drop-out from training and prevent unemployment along with unemployment moving unto long-term unemployment

.       There has been insufficient progress towards adaptability, flexibility and “flexicurity”

2.4 The current situation

A report on the EES (The Wim Kok Report) in 2004 set alarm bells ringing on the EES. Although there had been improvements across member states they were often too little and the picture for the EU as a whole was too mixed. Labour market growth had been slow, some labour markets were too inflexible, there were skills shortages and the report also identified the need to reduce labour market regulation. There had to be more urgency! There were two important publications-

·        Working together for growth and jobs: A new start for the Lisbon Strategy COM (2005) 24

·        Delivering Growth and Jobs: A New Integrated Economic and Employment Co-ordination Cycle in the EU SEC (2005) 103

Linking employment policy with macro-economic policies, but also with research and development and also social and social dialogue policy. The most recent Communication on Restructuring and Employment COM (2005)120 Final emphasised enhanced co-ordination across the various strands of EU policy, including new forms of financial support, adaptation of the regulatory framework, improving the effectiveness of European Works Councils etc. However, the key issues remain-

• Boosting the labour market participation rate
• Improving the adaptability of workers and employers
• Investing in human capital

This is in addition to the requirement to improving monitoring, encouraging the sharing of best practice, improving and sharing best practice in training etc.

Perhaps the most radical change, effective from 2006, is the combining of the Broad Economic Policy Guidelines with the EES, so that NAP’s will cover both areas. This marks a further hardening of the “soft” law measures and an illustration of the mounting concerns about the performance of the EU labour market. Although, a new social programme has also been announced and a Green Paper will be published later this year on the modernisation of the EU regulatory framework, that will also cover new models of work organisation.

The proposed measures under the restructuring Communication are-

• Confirmation of the three priorities set out above
• Reform of financial structures to support re-structuring, including ESF, and education and training programmes
• To create a growth and adjustment fund, along with contingency reseraves
• Promotion of fundamental social standards, decent working conditions and social dialogue
• Closer monitoring of restructuring by the European Restructuring Monitor
• Enhanced sectoral and regional monitoring
• Creation of a Task Force on restructuring
• A Green paper on the development of labour law(See above)
• Facilitation of worker mobility
• Dialogue with social partners etc on restructuring

3 Local initiatives

This section provides a background to the development of local labour market initiatives. Local initiatives are considered central to the success of the EES and OMC. Some material the material here is taken from a project, co-ordinated by the Province of Genova, Italy during which the nature and opportunities of the OMC were considered.

The link with Wales occurred as a consequence of the successful regeneration initiatives in Wales that have led to a better economic performance by Wales than the UK as a whole. Change has been most marked in reduced unemployment, improved training and, in particular, the rapid development of social enterprises and growth in entrepreneurism amongst traditionally disadvantaged groups such as women and people with disabilities.

The programme explicitly explored regulatory and policy mixes and options in the context of the traditions of the Italian and Welsh labour markets and the Recommendations under the EES to Italy for 2002 and 2003. These had highlight low labour market participation by women and older workers, the need for modernisation of labour market structures, improved training and life-long learning.

3.1 The Common Regulatory Framework

The EES during its early years relied strongly on EU and national level actions. Where there are tax and social security implications or decisions or policies that require a response at macro level, it is clearly appropriate. However, as the EES has progressed there has been more and more emphasis on action at a local level. This is particularly so for the Lisbon Process that launched the Open Method of Co-ordination . This established a “fully decentralised approach, applied in line with the principle of subsidiarity…” involving all the partners and forms of partnerships.

This change has clearly led to greater involvement by administrators as well as politicians, the social partners and other representatives of civil society. National governments are increasingly reflecting a local dimension in their policies and in their NAPs.

As an example of the emerging emphasis on local issues, Guideline 11 of the 2002 Employment Guidelines stated;

“Member States will(..) take into account, where appropriate, in their overall employment policy the regional development dimension(…); encourage local and regional authorities to develop strategies for employment in order to exploit fully the possibilities offered by job creation at local level and promote partnerships to this end with all the actors concerned, including the representatives of civil society” .

Various policy documents see the role of local employment activities, in particular, to combat high levels of unemployment, skill needs, and to respond to those often socially excluded, as vital.

Certain sectors and occupations are seen as likely to particularly benefit from local initiatives, as local conditions are best understood locally. For example;

.      Job creation in the service sectors such as tourism, transport, small manufacturing, child -care facilities. Job creation through the marketing of local crafts, local food produce and the development of other initiatives,  such as sport, leisure and environmental projects

.      Education and training is usually better provided at a local level

.      The integration of the most disadvantaged is best done at a local level

.      Social inclusion policies require support from services other than those concerned with employment. These include housing, health care and education

In some respects the experience of Wales meets many of the points made above. Regeneration has typically occurred through businesses operating in, say, environmental, specialist food manufacturing, leisure, craft and also in ITC.

3.2 Common objectives

It is central to the EES that the objectives, as well as the processes to ensure that the objectives are met are applied consistently across the EU, including at the local level.

The Local Development Forum, held in May 2003 in Greece was attended by over 600 delegates from 28 countries. The application of the EES at local level and its effectiveness was at the heart of the Forum.

 3.3 The role of local actors

For the reasons set out above, local actors have a key role in the EES. However, many reports state that there is currently a fairly low level of awareness about the local dimension of the EES, especially among the social partners, elected officials and the third sector ( social/ community groups etc). The Commission has identified that there needs to be awareness campaigns, use of local media and dissemination of the information packs available from the EES web page. Many of the early pilot projects have involved activities that have aimed to raise awareness, for example, the Italian Local Action Programme (LAP) pilot produced a LAP Guide that was distributed to 2000 Italian municipalities. The same thing happened in Sweden, with part of the pilot project being the development of a Guide for local actors.

The 2002 Report on LAPs, for example, suggested that successful programmes should include the following activities;

Ø      Analysis of the local situation, to include the collection and review of existing quantitative and qualitative data. This should cover labour market, employment, travel, housing and other relevant data. Such analysis could include a SWOT analysis

Ø      It may be useful to add to the existing information by conducting interviews and/or using questionnaires

Ø      Initiatives should aim to relate to existing national and regional plans/policies

Ø      As far as possible existing data and processes should be applied-there is no need to “re-invent the wheel” or to add extra layers of governance. Make use of what is already there!

Ø      From the outset, there is need to establish evaluative tools. For example, the Italian pilot in 2001 identified the following-

-         The contribution of actions to the local economy. Especially the development of entrepreneurism by young people

-         Improving employability

-         The development of indicators regarding realisation ,ie the number of new businesses, numbers placed in jobs through the employment service etc; assessment of how the employment profile of the area has changed; the connection between individual measures, for example graining and the improved employability/new jobs entered into etc

Set out below are a few examples of local actions in  Wales, that I have been involved with. They have not necessarily been reported to the European Commission but do appear to be good examples of local actors responding to local needs and establishing good practice that can be drawn on. They are discussed below in the context of sharing the outcomes and experience within the Genova region

However, it is also important to consider the impact of some major schemes..

In the UK we have many initiatives that operate at local level concerned with employability and life-long learning. However, one of the major problems when assessing the impact of the EES is that governments do not always acknowledge that a policy change was occasioned by the EES. No-one, it appears, want to admit that they have changed due to the intervention of others!

The UK government funded the Union Learning Fund to improve skills but gave a role to trade unions in the local area and at employing organisations. 66 learning centres have opened, 14,000 people have taken part in learning, 3,250 learning representatives have been trained and, most relevantly, around 4 million Euros have been attracted from other, especially, local partners to support the scheme – around 17 million Euros had been allocated by central government. It is reported that over the five years of the scheme, the greatest impact has been on basic skills, an area where the UK lags behind the EU generally

Support for small and new businesses has also been a feature. The Phoenix Fund provided start-up money for innovation in disadvantaged areas. A particular issue has been support for hi-tech firms that have the prospect of high growth. This includes projects to use research in partnership with local education institutions and there has been particular benefit for digital TV. The project, “Think Small First” requires mainstreaming of small business needs by local planning and regulatory authorities.

The Challenge Fund has set up schemes for developing and spreading best practice in flexible working and work-life balance. These have often involved local hospitals, small schools, service providers and community and support groups. The scheme requires a partnership approach and the sharing of practices developed. There is much to learn from a project involving a primary school in an outer London Borough where retention of skilled teachers was the issue.

Projects in Wales

In Wales, there have been many local projects to respond to the need for regeneration. Wales has seen major change in the last few decades, with decline in the major industries of steel making and coal mining, and problems in agriculture where there are many small and uneconomic hill farms. Chwarae Teg (“Fair play”, in English) aims to support women in local communities. It is funded by the National Assembly of Wales, local authorities and other groups. It support women in business, business networks, focuses on women in rural areas and has provided training and support for women in science and technology. It is also a campaigning organisation and its work has been very influencial in both the EU and Wales.

The University of Glamorgan has a unique Masters degree, supported by a number of local funders, to develop the skills of women entrepreneurs. The course is run in partnership with local banks, ITC providers, marketing organisations etc and has proved highly successful, in that the “survival rate” for its businesses is far higher than the average. The concept was the subject of collaborative work with Genova. 

The Law School at the University of Glamorgan works in partnership with local groups to support the development of skills needed for setting up and running Credit Unions. The project concerns the development of accredited training for credit union workers and the sharing of best practice. It is supported by Structural Funds and local organisations in Wales, as well as the university. Its focus is on rural and, typically deprived, areas.

In West Wales there has long been a major problem with youth unemployment. The local employment service in Pembroke, working in partnership with Manpower, the

multi-national employment agency, took on the role of training and them deploying the previously unemployed young people. Some were employed at the ill-fated Dome in London to celebrate the new millennium in 2000 and most have moved on to other work when it closed. A particular feature of many of the projects in Wales has been the involvement of private sector and third sector organisations.

There is generally, no shortage of  multi-national, multi-sectoral projects across the EU. But do we know of them, do we know how to evaluate them and do they has sustained impact?

4 So what has been achieved by the EES?

Considering the impact of the EES, there is an emerging literature that assesses the changes and makes comparisons across states. Recently, articles have been published that compare the impact of the EES in the UK, France and Germany. Interestingly, it shows a significant degree of convergence, at least in approach to implementing the guidelines and recommendations.

Take a few examples from the UK. When thinking about them it seems important to take the same labour market issues and consider whether change could have occurred in a different way, perhaps by using hard law.

Take the following issues-

Ø      Long term youth unemployment

Ø      A lack of affordable child care so as to enable mothers to go out to work

Ø      A continuing and very large pay gap between men and women (c. 20% for full timers and 40% for part-timers)

Ø      Very high sickness absence levels, especially impacting on the public sector

There have been “hard law “ provisions applying to some, at least of these, especially equal pay since 1975(When the pay gap was much as it is now!). Long term unemployment had been the subject of many measures to encourage labour market participation. So; what has happened;

Ø      The New Deal was created that required unemployed people to train or take jobs on offer and the failure to do so removed unemployment benefit. Only around 50% of those out of work now receive benefit and it is reported that the UK has the lowest unemployment rate in the EU

Ø      There has been considerable investment by local as well as central government to encourage the setting up of nurseries; employers who provide nurseries or who fund child -care can provide up to £50 of benefit tax free to the employee.

Ø      As well as tightening the Equal Pay Act, 1970, the government is considering making equal pay audits mandatory and is including equal in all mainstreaming provisions. This may well be a clear example of a move from hard to soft law measures to address a specific problem

Ø      The Queen’s Speech in June 2005 announced review of the Invalidiity Allowance that appears to enable up to 2.5 million people be supported by social security benefit would be reviewed. It is thought that a considerable number of those on this benefit could participate in the labour market. This is backed up with hard law in terms of disability discrimination and age discrimination hard laws.

The impact of the EES appears to be in encouraging thinking about problems in a wide-ranging way and drawing on the experience of other states and regions. In terms of achieving change, I think it is a success, if not a complete success. This may in part be due to  a hardening of the EES in recent years. The issue of sanctions is still unresolved, but often the EU “moves in mysterious ways”.

PEL 2005.